People fear to provide personal and financial information, even though several improvements have been made in relation to data encryption. If not, we will be dealing with security and safety concerns of online business. 2.Data must be homogenous and uniform otherwise comparison may not be possible. The E-banking mode of transaction is considered by most people today because of its 24x7 availability. If you want to scale your business you . We are glad you liked our blog. Syllabus. Why does E-business, referred to as the emerging mode of business explain its scope and benefits to business? E-Commerce businesses enable business firms to reach out to customers all over the world who have access to the internet. Diadvantages of e-commerce : (a) It lacks personal touch. After discussing the recent fire breakout in their area, they decided to take fire insurance for their house or work area. The questions would be based on the NCERT textbook for class 11 Business Studies. (c) Courier Services Courier services refers to postal services provided by the private firms for carrying mails, parcels etc. On the one hand, it allows the seller an access to the global market; on the other hand, it affords to the buyer a freedom to choose products from almost any part of the world. Similarly, is it ethical to outsource the work to countries where there exists wage-discrimination on the basis of sex of the worker? The best part of having these questions is that the asked question itself projects a hint of its answer. First you need to pay to a bank an amount equivalent to the digital cash that you want to get issued in your favor. These stages are as follows. Just as intercom facilitated voice communication within the office, intranet facilitates multimedia and even 3-D graphic communication among organizational units for well-informed decisions, permitting better coordination, faster decisions and speedier workflows. But there are some limitations too. It is only a part of e-business that includes other electronically conducted business functions like inventory management, production, product development, finance, accounting, and human resource management. People fear to provide personal and financial information, even though several improvements have been made in relation to data encryption. OLX and qickr are examples of well-known websites used to conduct business. (a) Creation of utility(b) Collaborations(c) Commercial negotiations(d) Inviting tenders. You can also download them from our student dashboard. This may cause resentment back in the home country if the home country is suffering from the problem of unemployment. In other words, depending upon what businessa company is in, there will be some activities that are central and critical to its basic business purpose. The subject cannot be ignored as it is the foundation of many concepts and theories which are studied at an advanced level in class 12. Online ordering systems scans process payment and orders in real-time, usually faster, more accurately and cheaper than human workers. Outsourcing is the process of contracting a specific business function or operations to specialized agencies. For this, one may usecryptography. Which principle of. E-Business is described as the use of computer networks to conduct business, trade, and commerce. Only those who possess a secret key can decipher (or decrypt) the message into plaintext. E-business is riskier also in the sense that there are additional hazards of impersonation and leakage of confidential information such as credit card details. Check out the following pointers which help the students to understand the advantages of revision notes for the CBSE Class 11 students: Revision is a key ingredient to include in your daily study. The sole purpose of increasing the weightage of case-based questions in the class 11 curriculum by CBSE was to drift from rote learning to competency and situation-based learning. Before online shopping, one has to register with the online vendor by filling-up a registration form. It has various benefits and limitations. 3/4 MARKS QUESTIONS : State any three difference between e-business and traditional business. Business Studies is considered to be quite interesting as well as an occupying subject as compared to all other core subjects of the CBSE class 11 commerce stream. Despite limitations, e-commerce is the way; If you would like to contribute notes or other learning material, please submit them using the button below. It provides all noncase activities.4 It has no pre-determined process to reach a conclusion.5. The case studies have always been considered to be challenging for the students, for such questions demand the application of their knowledge of the fundamental business concepts and principles. Hence, it is vital to be familiar with this chapter to ace scholastic exams as well as to develop a sound understanding of the latest modes to carry out a business plan. Outsourcing is yet another trend that is radically reshaping business. If the term business is taken to mean a wide range of activities comprising industry, trade and commerce; e-business may be defined as the conduct of industry, trade and commerce using the computer networks. In class 12 CBSE Board, However we will examine only the direct effects of increase in GDP on economic welfare. This may be referred to as , The intended delivery does not take place, goods are delivered at wrong address, or goods other than ordered may be delivered. Please verify. Non-Monetary . What Are The Top Disadvantages And Limitations For eCommerce Businesses? 1. On-line opens up the whole world as one shop. It is, therefore, appropriate that we familiarize ourselves with how e-business is conducted. Though, many a times, the termse-business and e-commerce are used interchangeably, yet more precise definitions would distinguish between the two. It is the upward shift of BPO2. Activity is not Interconnected to other Jobs: If a fungible, specialized, and measurable position is linked to other key operations within the organization, it cannot be outsourced. For the sake of the candidates we are providing Class 11 Mock Test / Practice links below. (I)ease of formation and lower investment requirements: (ii)Incongruence between order taking/giving and order fulfillment speed: (iii) Need for technology capability and competence of parties toe-business: (iv) Increased risk due to anonymity and non-traceability of parties: Despite limitations, e-commerce is the way. As the name implies, B2C (business-to-customers) transactions have business firms at one end and its customers on the other end. Traditional businesses have contact with the salesperson in the traditional way, and there is a sense of humanity and trustworthiness as a result of this. Before the CBSE Class 11 Business Studies examination, when preparation time is limited, one can use these revision notes to revise in a short span of time. If you are drop shipping, you can easily increase the budget of your ad campaign without worrying much about keeping up with the demand. The purpose of a school, for example, is to develop a child by means of curricular and co-curricular activities. Do you need help with your Homework? Even the government departments and regulatory authorities are increasingly moving in this direction whereby they allow electronic filing of returns and reports. Outsourcing, more so offshore out-sourcing, stimulates entrepreneurship, employment and exports in the host countries (i.e., the countries from where outsourcing is done). The software development tools are still evolving and changing rapidly. E-commerce refers to a company's online interactions with its customers and suppliers. E-commerce permits conduct of these activities at a much lower cost but high speed. (d) There is increased risk due to anonymity and non-traceability of parties. It then becomes difficult to protect it from being copied. Division of labour and specialization, besides improving quality, reduces cost too. High, because various costs has to be incurred in terms of rent payment etc. , IT Based Non IT based, , Customer facing Backend Customer facing Backend, , Voice based Non voice Non core Core Marketing Manufacturing Research, , In bound HR Banking, Outbound Administration Insurance. Back home, the company cannot do so due to stringent laws forbidding use of child labour. The insurance company acquired the burning material and approved his claim. CBSE, NCERT, JEE Main, NEET-UG, NDA, Exam Papers, Question Bank, NCERT Solutions, Exemplars, Revision Notes, Free Videos, MCQ Tests & more. Technical Limitations 10. Faster Service: It provides speedy service as peoples do no need to stand in queues for paying their . (I) Transaction risks:Online transactions are vulnerable to the following types of transaction risks: Thus, in e-business risk may arise for the seller or the buyer on account of default on order taking/giving, delivery as well as payment. Purchases through online shopping may be done in a number of ways. Lack of Security: There is a lack of system security, reliability, standards, and some communication protocols. Nature of contact with the suppliers or any other third party, Response time for meeting customers requirements. The biggest drawback of e-commerce is the security of business information. Emerging Modes of Business - CBSE Notes for Class 11 Business Studies. Leverage Edu Tower, (b) The physical delivery of the product takes time. What are the three stages of online transactions? She found a buyer and sold it for Rs 10,000. If you are interested in study abroad, call us on 1800 57 2000 and get a expert guidance. There is no kind of interaction between the buyer and the seller. A-258, Bhishma Pitamah Marg, Block A, One can presample books, journals etc. Electronic commerce plays an essential role in advancing information technology as well as communication. Exchange of cash, assets, and information are likewise considered E-commerce. revision notes free of cost from the Vedantu website (vedantu.com). Explain briefly any four limitations of e-business. In this article, you will learn the advantages and disadvantages of E-commerce so you can make an educated decision about your company's future. The disadvantages of e-commerce can be divided into two categories: Technical Limitations. Obviously, website is not a physical location. Unlike shops and malls, they just have to be set up on the internet platform. Resources Required for Successful e-Business Implementation, Outsourcing or Business Process Outsourcing (BPO). In order to cut the cost, the companies outsource the work to some other country where the work is done in an unethical way. Understanding the concept of outsourcing is important as an emerging model of business, and therefore, it is a vital topic of business studies. Theory: 80 Marks Time: 3 Hours Project: 20 Marks. (c) Commercial negotiations. (Business Studies grade 11), Case study question examples in Business Studies, Advantages of case study questions in Business Studies, Class 10 Social Science Case Study Questions, Class 11 Political Science Case Study Questions, Class 12 Accountancy Case Study Questions, Class 11 Business Studies Case Study Questions, Class 12 Political Science Case Study Questions. The reason behind this is that there are numerous advantages of e-business which are as follows. Using e-commerce, we can generate orders and products from any time, anywhere, without any human intervention. E-commerce and outsourcing have made businesses quite simple and convenient for both producers and consumers. Opportunity For Physical Pre Sampling Of The Products, Less. It focuses on knowledge expertise instead of process expertise.3. Tarasha followed her friends advice and got her sofa repaired so that it looked better and uploaded nicely clicked pictures on the website without disclosing the fact that it was damaged from the inside. There are no set hours of trading. Clearly, these activities comprise the core activities. Next, is the step of placing an order where the consumer would need to pick and drop the items in the shopping cart, and then the consumer can check out if they are sure of what they want to buy. For e-business, you require additional resources for developing, operating, maintaining and enhancing a website where site means location and web means World Wide Web (www). In fact, internet is responsible for the popularity of the phrase:networked individuals and firms are more efficient than networthed individuals.. Hi, Mahak!! So, what the firm that goes in for outsourcing look for is the doing skills rather than development of the thinking skills. 1- Business to Business (B2B) Here, both the parties involved in e-commerce transactions are business firms. Social Responsibility of Business and Business Ethics. Candidates who are studying in Class 11 can also check Class 11 NCERT Solutions from here. Seller denies that the customer ever placed the order or the customer denies that he ever placed the order. This may be referred to as . Outsourcing allows the company to strive for excellence. Registration refers to having an account with the online vendor. What are the opportunities & benefits offered by e-business to the customers. E-advertising is cost effective and a firm can fund its advertising within its own budget. Are you feeling skeptical about choosing the right career field? Among all the other core subjects of the Commerce stream i.e accountancy, economics and business studies, Business Studies is the one that is purely theoretical. Delivery Guarantee E-commerce Does Not Allow You to Experience the Product Before Purchase You cannot touch the fabric of the garment you want to buy. Sanitation and housekeeping functions are non-core for most organizations. Around 80% of e- commerce transactions are of this type. One of the benefits of e-commerce stores is that it is not bound by geographical boundaries. Emerging-Modes-of-Business-Class-11-Notes, Difference between Traditional and e-Business, Emerging-Modes-of-Business-Class-11-Notes-1, Nature And Purpose of Business Class 11 Notes, Class 11 Private, Public and Global Enterprises, End-to-end support for your study abroad journey, Proximity to the source of raw materials and/or the market for the products. Explain various limitations of Ecommerce for a business organisation? So it is difficult for the consumers to check the quality of the product, until the order has been delivered. Internet is truly without boundaries. CBSE CBSE (Arts) Class 11. The case-based questions asked in the CBSE Business Studies question paper for class 11 are of two types: As per the latest circular issued by CBSE on Assessment and Evaluation practices of the board for the session 2022-23, CBSE has clearly mentioned that competency-based questions including case studies will be different from subjective questions. In this mode of banking, the transaction is done through online platforms. Payment for the purchases through online shopping may be done in a number of ways: Credit card allows its holder to make purchase on credit. (d) Customer Support Services All durable goods require after sale or customer support service to register and attend the complaints of the customers. Typically, non-core areas like software development, content writing, client communication, etc. The next one is a technological limitation that the cost involved with . In the quest for excellence, it is necessary not only to know what you would like to focus on, but also what you would like others to do for you. For instance, it could be through net banking, credit or debit cards, digital cash, cash on delivery or it could be through the method of writing a cheque. So firms prefer to outsource these services to outside agencies which are specialised in these tasks. Then, there also are problems of virus, and hacking, that you must have heard of. Net-banking Transfer: Modern banks provide to their customers the facility of electronic transfer of funds over the Internet using Immediate Payment Service (IMPS), NEFT and RTGS. It may be pointed out that most of the limitations of e-business discussed above are in the process of being overcome. Setting up of any business requires money, men and machines (hardware). A "password" must be entered among the numerous details since the areas relating to an individuals "account" and "shopping basket" are password protected. So, go ahead and check the Important Notes for CBSE Class 11 Business Studies Emerging Modes of Business from this article. After being sure of what you want to buy, you can checkout and choose your payment options. There are three phases of doing business in e-business or on-line. Among various details that need to be filled in is a password as the sections relating to your account, and shopping cart are password protected. This occurs when outsourcing partners benefit from economies of scale by providing the same service to multiple organisations. Lower Cost: With the advancement of the eCommerce platforms, it has become very affordable and easy to set up and run an eCommerce business with a lower overhead. What is E-commerce? In the Business Studies class 11 chapter, students also have to learn the limitations of the outsourcing model: As a company grows, the complexities and scope of its business also increase. Why is e-banking referred to as the emerging mode of business? After realisation, product delivery may be attempted. The amount owed by the cardholder to the online seller is assumed by the card issuing bank, which then transfers the transaction's amount to the seller's credit. Here, the business originates from the consumer and the ultimate destination is also consumers, thus the name C2C commerce. Limitations of Statistics: 1. Which principle of Insurance is highlighted in the given statement. Even if you may like to have a stake in the business of your outsourcing partners, you profit from not only the low-cost and better quality services provided by them to you but also by virtue of a share in the profit from the overall business they do. There are found to be six main limitations of ecommerce: security and trust; internet experience; enjoyment; language; legal issues; and technology acceptance (ease of use and usefulness). Computer literacy: A basic technical knowledge is required of both computing equipment and navigation of the Internet and the World Wide Web. e - Business may be high tech but the lacking interpersonal interaction is truly one of its shortcomings. One of the advantages of e-commerce is that it is easy to scale the business. Class 11 Business Studies Emerging Modes of Business Get here the Notes for Class 11 Business Studies Emerging Modes of Business. The questions can also be categorized on their difficulty level: Students need to prepare well for the case-based questions before appearing for their class 11 Business Studies exam. It is a general fear among the clients/customers to provide personal and financial information, even though several improvements and steps are taken up for its security. Write any two Values which the company ignores while planning to arrange money from false claims. e.g., estimating the finance required, how and when to issue shares, debentures. 5/6 . Information can be transmitted by post too, but this again is quite a time consuming and expensive process. For students appearing for grade 11 CBSE exams from the Commerce stream, Business Studies is a fundamental subject. Digital Cash: This type of currency has no physical qualities, but it allows you to utilise real money in an electronic format, such as through e-wallets or PayTm. Disadvantages of E-Commerce. A shopping cart is an online record of what an individual has added to his cart while visiting an online store. A business must engage with a number of other businesses in order to create utility or deliver value. The supposed delivery doesn't take place, or is delivered at the incorrect address, or product apart from ordered is delivered. Solve all the questions and answers given at the back of each chapter. Credit or Debit Cards: The holders of credit cards can enjoy making purchases on credit. (i) Registration Before on-line shopping one has to register with the on-line vendor by filling up a registration form. There is high risk of buying unsatisfactory products through e-commerce. About Us | It is termed to be comparatively easier and more scoring than the other mandatory subjects of the commerce stream. They also succeed by increasing their capabilities by outsourcing out the remaining tasks to people who excel at them. E-commerce signifies the utilization of electronic means and technologies to handle commerce-related activities like transfer or exchange of goods, sales, purchase, information, and services while . Now, e-commerce is the interaction that takes place between business firms and their customers and also suppliers over the internet. They are short of funds so they are trying to find means to arrange funds. Activities that are Interchangeable or Fungible. High due to fixed charges associated with investments in procurement, storage, production, distribution, sales, etc. Think of a shoe company that, in order to cut costs, outsources manufacturing to a developing country where they use child labour/women in the factories. Outsourcing helps the organisation to focus and work on its core activities giving the organisation enough flexibility to find innovative ideas to make a standpoint in the market. Requiring Explicit Knowledge which is Formal and Codifiable: Although an IT programmer's job can be outsourced to a third party, a CEO's position requires management, technical, and human relations skills. Online shopping is the future of the retail market. Limitations of GDP as the measure of Economic Welfare. 1. the questions would be based on real-life scenarios encountered by the students.CBSE not only changed the way case-based questions were formulated but also incremented their weightage in the Business Studies question paper. They used to meet and discuss their ideas. With the help of Class 11 Mock Test / Practice, candidates can also get an idea about the pattern and marking scheme of that examination. It can harm the interest of the party that outsources its processes and even has a risk of competitor firms getting information about that company. They used to meet and discuss their ideas. The chapter of class 11 on Emerging Modes of Business is incomplete without mentioning the differences between the two forms of business. We, as a customer, do not have to rely on physical markets anymore, with the emergence of online shopping and online banking methods. As people become more used to interacting electronically there could be erosion (divide) of personal and social skills which might eventually be detrimental to the world we live in where people are more comfortable interacting with a screen than face to face. The amount due from the card holder to the online seller is assumed by the card issuing bank, which later transfers the amount involved in the transaction to the credit of the seller. Hopefully, through this blog, we have successfully provided you with comprehensive knowledge of Emerging Modes of Business. The following are some of the limitations or disadvantages of e-commerce. This is similar to using code words with someone so that others do not understand your conversation. If you wish to get more case study questions and other study material, download the myCBSEguide app now. Outsourcing necessitates the exchange of a great deal of critical information and knowledge. In India in the IT sector alone, for example, there has been such a tremendous growth of entrepreneurship, employment and exports that today we are the undisputed leaders as far as global outsourcing in software development and IT-enabled services are concerned. It meansVitalInformationunderSiege. Australia, Leverage Edu Tower, To ace this CBSE exam, students are not only required to work hard but they ought to learn to do smart work too. Limitations of E-commerce: 1) Security The biggest drawback of e-commerce is the issue of security. vii. In view of the above discussion, it is clear that e-business is here to stay and is poised to reshape the businesses, governance and the economies. PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods such as checks and money orders.The company operates as a payment processor for online vendors, auction sites and many other commercial users . Block A, Defence Colony, New Delhi, Such situations can be averted by providing for identity and location/address verification at the time of registration, and obtaining authorization as to the order confirmation and payment realization. More, as IT sector is among the topmost priorities of the government. How does outsourcing help in the formation of a new mode of business? Is it something that matters in the preparation for competitive exams? Revise from our ready-to-revise revision notes. Of course, for municipalities and sanitations services providers, these activities comprise the core of their business activity. During the policy, a fire takes place in his godown and he does not take any preventive steps like throwing water and calling the employees from the fire fighting department to control the fire. One, due to their narrow focus, individuals excel in the activities that they can do best. Cheque: The online merchant may arrange for the customer's cheque to be picked up. Explain any three reason. 6. Book an e-meeting now. The vendor doesn't get payment for the things provided, despite the fact that the customer states that payment was created. Disadvantage 1. Your contact details will not be published. Likewise, business firms are realizing the usefulness of focusing on just a few areas where they have distinct capability or core competence, and contracting out the rest of the activities to their outsourcing partners. A threat of an increase in cybercrimes. data transfer and transaction risk. Delhi 110024, A-68, Sector 64, Noida, So it is difficult for the consumers to check the quality of the product, until the order has been delivered. Requiring Explicit Knowledge which is Formal and Codifiable: Although an IT programmer's job can be outsourced to a third party, a CEO's position requires management, technical, and human relations skills. The private outsources offer speedy movement of parcels and samples so business firm relay on them. Explain any two benefits and limitations of e-business. One, they excel themselves in the activities that they can do the best by virtue of limited focus. Other activities may be regarded as secondary or incidental to fulfilling that basic purpose. You cannot check how the shoe feels on your feet. Scope of Business on the Basis of Business: Over computer networks, functions like production, finance, marketing, and personnel administration, as well as management operations such as planning, organising, and controlling, can be performed. Needs explicit knowledge that is formal and codifiable, Activity is not interconnected to other jobs. Customer Support Services:All durable items need an after-sales or customer support service to register and respond to consumer concerns. For example, a school may tie-up with some computer training institute to impart computer education to its students. Candidates can also check out the Key Points, Important Questions & Practice Papers for various Subjects for Class 11 in both Hindi and English language form the link below. Hence, as per the 5th chapter of business studies, the emerging modes of business are e-business, e-commerce, and outsourcing. A major disadvantage of e-commerce is putting a stop to buying capabilities because of a site crash. In the course of contracting out manufacturing, marketing, research and development or IT based services, what is ultimately contracted out is 'employment' or jobs from one country to another. In the process of Outsourcing, the non-core activities of the organisations are handed over to the external parts of the organisations who are specialised in those particular non-core functions. The insurance company refused to make payment for the claim as it became aware of the highly explosive chemicals. Efforts are on to overcome the digital divide, for example, by resorting to such strategies as setting up of community telecentres in villages and rural areas in India with the involvement of government agencies, NGOs and international institutions. He suffered a loss of 1,20,000. Creation of utilities or delivering value requires a business to interact with a number of other business firms which may be suppliers or vendors of diverse inputs; or else they may bea part of the channel through whicha firm distributes its products tothe consumers.
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